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Backward Integration This is a process by which a company acquires another company that produces the raw material or the ancillaries which are used by the former. This type of takeover guarantees, to a certain extent, an uninterrupted supply of raw materials and components at fair prices. Bear Hug It is used in takeover situations. It is an ...
Vertical integration is often closely associated with vertical expansion which, in economics, is the growth of a business enterprise through the acquisition of companies that produce the intermediate goods needed by the business or help market and distribute its product.
Another risk of strategic partnerships, especially between manufacturer and key supplier, is the potential forward integration by the key supplier. [6] Also different developments or development plans can lead to a broken strategic partnership. The relationships are often complex as a result, and can be subject to extensive negotiation.
Examples for tapered integration are (1) Tim Hortons owning some of its retail outlets but also using franchising, (2) Coca-Cola and Pepsi both having integrated bottling subsidiaries while also relying on independent bottlers for production and distribution in some markets, or (3) BMW which uses both in-house market research from its Corporate Center Development and external market research ...
The premise underlying PLS is the concept of shirkah (similar to joint venture) in which the partners share in the profit and loss based on their ownership. [8] This premise may be realized through mudarabah, musharaka, [8] or a contract combining both concepts. [9]
An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects lead to the creation of value over the short, medium and long term." [1] It means the integrated representation of a company's performance in terms of both financial and other value relevant information.
Convergence trade is a trading strategy consisting of two positions: buying one asset forward—i.e., for delivery in future (going long the asset)—and selling a similar asset forward (going short the asset) for a higher price, in the expectation that by the time the assets must be delivered, the prices will have become closer to equal (will have converged), and thus one profits by the ...
The globally integrated enterprise is a term coined in 2006 by Sam Palmisano, the then CEO of IBM Corp, used to denote "a company that fashions its strategy, its management, and its operations in pursuit of a new goal: the integration of production and value delivery worldwide." [1]